Blitz Computer Center, a retailer of computer hardware and software, started operation in 2021. The following accounts and their balances were taken second year of operation, when E. Gates made an additional investment of P250,000. Accounts Payable Accounts Receivable Accumulated Depreciation - Office Furniture & Equipment Accumulated Depreciation - Store Furniture & Equipment Advertising & Promotion Expense Allowance for Bad Debts Bad Debts Expense Cash in Bank Cash on Hand Depreciation Expense - Office Furniture & Equipment Depreciation Expense - Store Furniture & Equipment E. Gates, Capital E. Gates, Drawing Freight In Insurance Expense Interest Expense 26,400 38,000 49,000 56,000 250,000 4,800 2,800 309,000 60,000 25,000 20,000 540,400 110,000 5,000 55,000 67,500 Merchandise Inventory, Jan. 1 Notes Payable due 2024 Office Furniture & Equipment Office Rent Office Salaries & Wages Office Supplies Used Prepaid Insurance Purchase Discount Purchases Salaries & Wages - Store Sales Sales Returns & Allowances Store Furniture & Equipment Store Rent Expense Store Supplies Expense Supplies Inventory 137,500 140,000 214,500 20,000 130,000 6,500 54,000 15,000 500,000 40,500 1,257,500 14,000 209,000 40,000 5,500 6,000

Blitz Computer Center, a retailer of computer hardware and software, started operation in 2021. The following accounts and their balances were taken second year of operation, when E. Gates made an additional investment of P250,000. Accounts Payable Accounts Receivable Accumulated Depreciation - Office Furniture & Equipment Accumulated Depreciation - Store Furniture & Equipment Advertising & Promotion Expense Allowance for Bad Debts Bad Debts Expense Cash in Bank Cash on Hand Depreciation Expense - Office Furniture & Equipment Depreciation Expense - Store Furniture & Equipment E. Gates, Capital E. Gates, Drawing Freight In Insurance Expense Interest Expense 26,400 38,000 49,000 56,000 250,000 4,800 2,800 309,000 60,000 25,000 20,000 540,400 110,000 5,000 55,000 67,500 Merchandise Inventory, Jan. 1 Notes Payable due 2024 Office Furniture & Equipment Office Rent Office Salaries & Wages Office Supplies Used Prepaid Insurance Purchase Discount Purchases Salaries & Wages - Store Sales Sales Returns & Allowances Store Furniture & Equipment Store Rent Expense Store Supplies Expense Supplies Inventory 137,500 140,000 214,500 20,000 130,000 6,500 54,000 15,000 500,000 40,500 1,257,500 14,000 209,000 40,000 5,500 6,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?
Please answer, round off final answers to two decimal places
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